MSFT Q1 2018 Earnings Report — Microsoft Corporation Revenue & Financial Results | Market Cap Arena

Microsoft CorporationMSFT

Q1 2018 Earnings

Reported October 26, 2017

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q1 2018	Q4 2017	Q1 2017	QoQ Change	YoY Change
Revenue	$24.5B	—	$21.9B	—	11.9%
Op. Income	$7.7B	—	$6.7B	—	14.8%
Gross Margin	66.3%	—	64.2%	—	2.0pp
Net Margin	26.8%	—	25.8%	—	1.0pp
EPS (Diluted)	$0.84	—	$0.72	—	16.7%
Free Cash Flow	$10.3B	—	$9.4B	—	9.8%

Revenue Flow

Item	Amount
REVENUE	$24.5B
Cost of Revenue	$8.3B
GROSS PROFIT	$16.3B
R&D Expenses	$3.6B
Selling & Marketing	$3.8B
General & Administrative	$1.2B
SG&A Expenses	$5.0B
Other Expenses	$0
Operating Expenses	$8.6B
Cost & Expenses	$16.8B
OPERATING INCOME	$7.7B
Interest Income	$473M
Interest Expense	$672M
Other Income/Expenses	$276M
INCOME BEFORE TAX	$8.0B
Income Tax Expense	$1.4B
Net Income from Continuing Ops	$6.6B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$6.6B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$6.6B
D&A	$2.5B
EBIT	$8.7B
EBITDA	$11.2B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$24.5B
Cost of Revenue	$8.3B
GROSS PROFIT	$16.3B
R&D Expenses	$3.6B
Selling & Marketing	$3.8B
General & Administrative	$1.2B
SG&A Expenses	$5.0B
Other Expenses	$0
Operating Expenses	$8.6B
Cost & Expenses	$16.8B
OPERATING INCOME	$7.7B
Interest Income	$473M
Interest Expense	$672M
Other Income/Expenses	$276M
INCOME BEFORE TAX	$8.0B
Income Tax Expense	$1.4B
Net Income from Continuing Ops	$6.6B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$6.6B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$6.6B
D&A	$2.5B
EBIT	$8.7B
EBITDA	$11.2B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$6.6B
Depreciation & Amortization	$2.5B
Stock-Based Compensation	$973M
Deferred Income Tax	-$53M
Other Non-Cash Items	-$523M
Change in Working Capital	$3.0B
OPERATING CASH FLOW	$12.4B
Capital Expenditure	-$2.1B
Acquisitions (Net)	-$179M
Purchases of Investments	-$33.0B
Sales/Maturities of Investments	$28.3B
Other Investing Activities	$106M
NET CASH FROM INVESTING	-$6.9B
Net Debt Issuance	-$925M
Common Stock Repurchased	-$2.6B
Common Dividends Paid	-$3.0B
Other Financing Activities	-$150M
NET CASH FROM FINANCING	-$6.3B
FREE CASH FLOW	$10.3B
Net Change in Cash	-$779M

Balance Sheet

Item	Amount
Cash & Equivalents	$6.9B
Short-Term Investments	$131.6B
Net Receivables	$14.6B
Inventory	$3.2B
Other Current Assets	$4.8B
TOTAL CURRENT ASSETS	$161.0B
PP&E (Net)	$31.7B
Goodwill	$35.4B
Intangible Assets	$9.6B
Long-Term Investments	$5.3B
Tax Assets	$0
Other Non-Current Assets	$6.1B
TOTAL NON-CURRENT ASSETS	$88.1B
TOTAL ASSETS	$249.1B
Account Payables	$6.9B
Short-Term Debt	$9.2B
Deferred Revenue	$22.8B
Other Current Liabilities	$10.2B
TOTAL CURRENT LIABILITIES	$51.6B
Long-Term Debt	$76.3B
Deferred Revenue NC	$2.1B
Deferred Tax Liabilities	$5.5B
Other Non-Current Liabilities	$20.8B
TOTAL NON-CURRENT LIABILITIES	$107.8B
TOTAL LIABILITIES	$159.4B
Common Stock	$69.4B
Additional Paid-In Capital	$0
Retained Earnings	$19.7B
Treasury Stock	$0
Accum. Other Comp. Income	$526M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$89.6B
Minority Interest	$0
TOTAL EQUITY	$89.6B
TOTAL LIABILITIES & EQUITY	$249.1B
Total Debt	$90.0B
Net Debt	$83.1B